On Wednesday, Barclays (LON:BARC) initiated coverage on shares of Weatherford International plc (NASDAQ:WFRD) with an Overweight rating and set a price target of $135.
The company, which experienced rapid growth in the past, faced challenges that led to bankruptcy due to insufficient controls, excessive spending, and poor execution. Since its reorganization in 2019, Weatherford has undergone significant changes under the leadership of CEO Girish Saligram. The new strategy emphasizes margin improvement and free cash flow (FCF) generation, positioning the company favorably for the ongoing industry cycle.
Barclays highlighted the transformation Weatherford has undergone in recent years, transitioning from a company with a complex past to one with a strong culture of accountability and effective execution. The firm's analysts pointed out that the company's past issues should not overshadow its current potential and the strategic overhaul it has successfully implemented.
The analyst from Barclays remarked on the company's evolution, stating, "While the Weatherford name may conjure up memories of its complicated history to many investors, the past several years have shown how it has evolved into a very different company with a culture of accountability and execution that was previously lacking."
Weatherford's stock rating and price target reflect Barclays' confidence in the company's revamped strategy and its well-positioned portfolio for the forecasted longevity of the current market cycle.
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